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Question 2 Adjustment of Depreciable Base and impairment. (14 points) Perry Corp. acquired a machine on January 1, 2017, at a cost of $150,000. The machine had a 10- year useful life and an estimated salvage value of $20,000. The straight-line method of depreciation was used. On January 1, 2021. Perry overhauled the machine at a cost of $22,000. The overhaul extended the estimated useful life of the machine to 11 years from January 1, 2021 and changed the salvage value to $10,000. On December 31, 2021, new technology was introduced that would accelerate the obsolescence of Perry's machine. Perry's controller estimates that expected future net cash flows on the machine will be $100.000 and that the fair value of the machine is 95,000. Instructions 1. Compute the accumulated depreciation up to December 31, 2020. (2 points) 2. Compute the new carrying value on January 1, 2021 after the overhaul. (3 points) 3. Compute and record the depreciation expense for 2021 (January 1,2021 - December 31, 2021). (3 points) Depreciation expense: Account Debit Credit 4. Impairment loss (if any) of the machine on December 31, 2021. (6 points) (1) Find out the carrying value of the machine on December 31, 2021. (2 points) Carrying value on 12/31/2021 is: (2) Show the tests to find out the impairment loss (if any) of the machine on December 31, 2021. (2 points) (3) Prepare the journal entry to record the impairment loss of the machine. If there is no impairment loss, write "none needed". (2 points) Account Debit Credit